Big investors plan Rs 10k-cr exit in PhonePe IPO

New Delhi: Walmart will trim its stake in PhonePe by about 12 per cent, while other backers such as Microsoft and Tiger Global will offload all their holdings in the digital payments company’s IPO, touted as India’s biggest since October. Bengaluru-based PhonePe plans to sell 5.07 crore shares, entirely by existing shareholders, with no additional capital, according to an updated draft prospectus filed to the market regulator. The offering may raise up to USD 1.5 billion, valuing the company at about USD 15 billion. This will be the biggest initial public offering (IPO) since Tata Capital’s USD 1.7 billion share sale in October. PhonePe, which competes with Google Pay and Paytm, aims to list by mid-2026. Walmart, which holds 71.77 per cent in PhonePe through its entity WM Digital Commerce Holdings, plans to sell as many as 4.59 crore shares, representing about 9 per cent of the company. Smaller shareholders, Tiger Global and Microsoft, are fully exiting their stakes, according to the updated draft red herring prospectus. Tiger Global, which first invested in PhonePe in 2021 after Walmart carved out the payments business from Flipkart India as a separate entity, will sell 10.39 lakh shares. Microsoft Global Finance plans to offload 36.78 lakh shares. PhonePe had 65.76 crore registered users and Rs 5,340 crore in transactions. It offers payment solutions to over 4.7 crore merchants. It posted a loss of Rs 1,444 crore on a revenue of Rs 3,919 crore in the six months ended September 30, 2025.